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Primark reports strong sales growth in the H1

Apr 29, 2024 United Kingdom
Primark reports strong sales growth in the H1
Associated British Foods (ABF) has reported strong sales growth for Primark in the first half of the year, highlighting that the Christmas season helped to offset the impact of a slow start to the cold season
Primark delivered strong sales growth in the period. This was driven by newly-opened stores and by last year’s carefully selected price increases to offset inflation. Sales of womenswear and menswear both grew well, as did sales of our health and beauty ranges. Our digital engagement continued to support sales growth in the period”, said the statement from ABF, Primark’s parent company.

First Half Results

In the six months to the 2nd of March, the retailer’s sales rose by 7.5% year-over-year at a constant currency basis to 4.5 billion British pounds. This followed the previously reported sales growth of 7.9% year-over-year in the 16 weeks to the 6th of January, which was impacted “by a slow start for many cold weather categories due to unseasonally warm weather, followed by strong Christmas trading with our seasonal ranges selling through well”.

ABF also reported that the new Primark stores contributed with a 5.4% sales growth and that like-for-like sales growth was 2.1% in the first half of the current fiscal year, “driven by higher average selling prices, partially offset by slightly smaller basket sizes and accordingly lower volumes”.

In the first half of the current fiscal year, the retailer’s sales in the UK grew by 4.3%, as compared to the same period of last year, due to a like-for-like sales growth of 3.6% and a contribution from new space of 0.7%. Meanwhile, in the rest of continental Europe, Primark’s sales grew by 7.9% year-over-year, with like-for-like sales growth of 1.5% and like-for-like sales growth of 6.4%, driven by the rapid expansion of stores in France and Italy. In the US, sales increased by 38.4% year-over-year.
 
Primark’s adjusted operating profit amounted to 508 million British pounds in the 24 weeks to the start of March, up by 46% on a constant currency basis, on a comparable basis to a similar period of the prior fiscal year. Accordingly, the adjusted operating profit margin for the period recovered to 11.3%, significantly higher than the 8.3% recorded in the same period last year.

Click + Collect trial in the UK

Elsewhere, Primark announced the end of its Click + Collect trial in the UK, reporting that it had demonstrated “good basket sizes and strong additional store sales” and that it was satisfying unmet demand “from both new and existing customers by offering them an extended choice beyond their local store offer”. As a result, the company plans to extend the service to all stores in England, Wales and Scotland.


Image Credits: archello.com

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